Not to sure about your credit rating?

Take the stress out of buying a vehicle from us with one of our
affordable finance packages which can be tailored to enable you to buy
the car of your choice with ease.

Our prearranged car finance facility
has been specifically designed to help customers who feel they may have a
poor credit history, find a car that fits within their monthly budget.

All
we need is a few details to get you started and by the end of our
quick and convenient process, where we do all the work for you, you
will know ahead of visiting one of our dealerships that your funding is
secure, meaning you can concentrate on finding the car which is right
for you.

Find out what it means, plus tips to improve your score.

There is a lot of confusion surrounding credit ratings. Rumours
are commonly banded around about ‘blacklists’ and student loans being
included in the credit rating.

This guide is here to help tell you why your credit rating matters and how it could affect you.

What is a credit rating?

In simple terms, a credit rating is a grading system used by banks and
lenders when you are applying for a bank account, credit card,
overdraft, mortgage and other financial products.

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Example credit report

Although it is a common myth, there is
no credit score blacklist and your credit record is not held on a single
database. Your records are held by three major credit companies: Call
credit, Experian and Equifax.

Your credit rating is just one
factor in a lender’s decision. Every bank or lender will couple your
rating with data of their own. For example, from the application form or
internal credit history. Whilst there are lots of factors involved, you
can help yourself by being aware of and taking care of your credit
rating.

How do they calculate your credit rating?

Nobody
is sure of the exact calculation used to get your credit rating and the
agencies all use different factors when ranking you. This is why it’s
best to check with all three (see below).

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However, we can be sure of which factors are taken into account and which definitely aren’t…

They will check:

Past bank dealings

Utility payments

Mobile phone contract payments

Credit card history

Loan history

Building society history.

They won’t check:

Student loans – Contrary to common belief, student loans do not have any influence on your credit score!

Parking fines

Whether you have checked your credit rating

Salary (although the bank will check this)

Savings

Gambling activity

Criminal records.

4 ways to improve your credit rating

Get a credit card or take out a loanYou can improve your credit rating by taking out a credit card or a loan and making repayments on time.

Pay all bills on timeThe simplest way to improve your credit score is simply to make sure that you pay all of your bills on time. That includes utility bills, mobile phone contracts, rent and any form of loan repayments.

Get on the electoral roleIf you aren’t on the electoral role then you won’t have a credit score at all. A lot of students fall foul to this one because after moving from home many don’t register with a new address.

Space out applicationsA lot of credit agencies will check the times that you have applied for things. As a student you may have to apply for lots of things all in one go but make sure you can spread out your applications for any extra finance and only apply if you really need to. If you are denied credit at any point, wait at least 30 days before making a reapplication.

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